“Vince McMahon Taking a Big Step: Selling Part of His Stake in the WWE!

Just when you thought that WWE’s business model had become too predictable, news broke that Vince McMahon is selling a large portion of his shares in the parent company of WWE. Reports suggest that he will sell 17 million of his Class B shares, which is approximately $272 million worth of his WWE stock. The 78-year-old billionaire has been the CEO of WWE, formerly the WWF, since 1982. McMahon’s move was announced in a Securities and Exchange Commission (SEC) filing on October 29th, and his sale will see his overall ownership stake of the company decrease from approximately 41.9 percent to 36.2 percent. Even though this move signals a shift in McMahon’s focus, it doesn’t seem to imply any huge changes in the company’s direction. According to the filing, the funds gained from the sale will be used by the WWE Chairman and CEO for “personal investments.” The filing goes on to state that the board of directors and management do not believe that the sale will have “an adverse effect” on WWE’s financial condition. Essentially, Vince McMahon is relinquishing some of his control over the company, but the majority of his class B shares will remain and Senate would not be significantly impacted. In addition, by transferring the burden of 17 million shares from McMahon, it’s not unimaginable that WWE’s stock prices could see a boost in the future. Whilst the news of McMahon selling his shares has been met with some mixed reactions from fans, The World Wrestling Entertainment’s parent company, TKO, will likely benefit from the move with the funds received through the sale. Whether the company enters a new era with new investments and different business strategies, or continues on the same course as before, Vince McMahon’s plans ensures that WWE is a viable entity for years to come.